That would create the third-largest player in U.S. television, the companies said.
The Fox Corporation announced the acquisition of Rokuis best known for its ecosystem of streaming devices. Subject to approval, Fox will pay about $22 billion for Roku, or $160 per share.
“This is a defining moment for Fox and a natural continuation of the thoughtful and focused strategy we’ve been implementing for nearly a decade,” Fox CEO and Executive Chairman Lachlan Murdoch said in a statement. “Today, we’re taking the next step: bringing together the most valuable portfolio of live content in video consumption with the premier streaming platform through which America watches it. This combination will transform our company’s operations into a high-growth vertical and provide a step change in our overall growth profile.”
Both companies say Roku will continue to operate as its own “partner-friendly platform.” The Roku channel currently serves more than 100 million households worldwide. Fox says that with Roku, it will have greater scale, reaching audiences with live content and broadcasts. It also gives Fox access to the “high-growth” area of advertising and streaming subscriptions. On that note, the company points out that the deal improves its “long-term growth profile” in broadcast and television.
Fox is paying in cash and some of its Class A common stock. Roku CEO and founder Anthony Wood said in a release, “I’m incredibly proud of what our team has built, and teaming up with Fox is an extraordinary opportunity to accelerate our vision, scale faster and innovate more aggressively for viewers, partners and advertisers.” Combined, the companies say it would create the third-largest entity in US television by share of viewers, and yes, the deal is subject to regulatory approval.
Roku just updated its home screen last month — for the first time in ten years. It brought features like increased personalization and a “top picks” section, but overall it doesn’t look significantly different.